High home prices are something we’re accustomed to at this point. We’ve had a couple years to get used to the record breaking rates, and industry experts agree they’ll likely continue into the foreseeable future. While real estate firms assumed home price growth would steadily decrease this year, that may not seem to be the case.
There are two driving forces behind this continued price appreciation; most significantly, interest rates have remained relatively low. Second, low inventory levels mean competition is fierce, driving up home prices. But there are signals that rates may rise in the 2022 spring market, pricing some homebuyers out of the market. According to the Mortgage Bankers Association, the average 30-year fixed mortgage rate went from 3.11% in December 2021 to 4.05% the week of February 17, 2021.
With these predictions, houses are likely to continue selling fast, even as buyers searching for their new home are already fatigued. But there are some things you can do to help improve your chances of winning a bidding war.
Stay on top of new listings
Offer the fewest contingencies
Include an escalation cap
Put the most money down
Be prepared to make a decision fast
Have your agent and mortgage team in place
If you’re considering purchasing in the DFW area, give us a call to see how we can help finance your dream home. First United Mortgage Group offers several loan program options to help you finance the home of your dreams. Give us a call today at (972) 591-3097.
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